Hungary: An Economy in Transition

Study of the economic transformation of Hungary, presenting local ideas and perceptions and international analysis.

Istvan Szekely (Author), David M. G. Newbery (Author)

9780521440189, Cambridge University Press

Hardback, published 28 January 1993

392 pages, 12 b/w illus. 44 tables
23.4 x 15.6 x 2.2 cm, 0.72 kg

"This is a book that no serious student of the Hungarian economy can afford not to have on his or her library shelf. That this work should be considered a reference work is all the more remarkable in view of the fact that it is an edited volume, containing sixteen essays and an approximately equal number of comments on them. It is not often that edited volumes make a lasting contribution to the literature. Equally remarkable, this book is still highly recommended, even though this review is being written more than three years after the February 1992 conference on whose proceedings the volume is based. The useful shelf life of this book should extend well into the next decade." Paul Marer, Review of Social Economy

The economic transformation of Hungary has reached a critical stage. Hungary has succeeded in attracting foreign capital, and has achieved its first current account surplus in convertible currency since 1984, despite upheavals, but the privatization process has reached a crucial stage. It is clear that it will be a lengthy and difficult process, with significant repercussions for the future of the economy and profound social and welfare consequences. This book presents some of the local arguments and perceptions informing the debate, and critical examination of these ideas from an international panel of scholars. The chapters address privatization; financial, tax and legal systems; integration into the international financial and monetary systems; labour markets, unemployment and the social safety net; and the political economy of the current economic transformation.

1. Introduction István P. Székély and David M. G. Newbery
Part I. Foreign Trade: 2. Economic consequences of Soviet disintegration for Hungary László Czaba
3. Regional cooperation in East-Central Europe Kálmán Mizsei
4. Export supply and import demand in Hungary: an econometric analysis for 1968–1989 Laszlo Halpern and Istvan P. Szekely
Discussion of Part I Renzo Daviddi
Part II. Privatization and Competition Policy: 5. 10 percent already sold: privatization in Hungary Zsigmond Jarai
6. Hungary: a unique approach to privatization - past, present and future Peter Mihalyi
7. Competition policy in transition Janos Stadler
Discussion of Part II John P. Bonin, Rumen Dobrinsky and Paul Seabright
Part III. The Financial System and Private Savings: 8. Short-run money market model of Hungary Julia Kiraly
9. The modernisation of the Hungarian banking sector Eva Varhegyi
10. Changing structure of household portfolios in emerging market economics: the case of Hungary, 1970–1989 Istvan Abel and Istvan P. Szekely
Discussion of Part III John P. Bonin, Lucian Ionescu and Colin Mayer
Part IV. Foreign Debt and Monetary Policy: 11. Hungary's foreign debt controversies and macroeconomic problems Gábor Oblath
12. Managing foreign debt and monetary policy Werner Riecke
Discussion of Part IV L. Alan Winters and Richard Portes
Part V. Legislative and Tax Reform: 13. A legal framework for the Hungarian transition, 1989–1991 Tamás Sárközy
14. Tax reform in Hungary Jeno Koltay
Discussion of Part V Athar Hussain
Part VI. Labour Markets, Unemployment and Social Security: 15. The transformation of shop floor bargaining in Hungarian industry Janos Kollo
16. The social security crisis in Hungary Maria Augusztinovics
Discussion of Part VI David M. G. Newbery and David Winter
Part VII. State Desertion: 17. State desertion and convertibility
the case of Hungary Istvan Abel and John P. Bonin
Discussion of Part VII David Begg and R. E. Rowthorn
Conclusion Sir Adam Ridley.

Subject Areas: Economic systems & structures [KCS]